How to Close a Demat Account (2026): Steps and Letter Format
To close a demat account, clear any dues, sell or transfer your holdings, then give your DP the Account Closure Request Form or a letter signed by all holders, or close it online in your broker’s app. CDSL allows an email request only from the registered email and only when the account holds nothing. Closure has no charge at Axis Bank and mStock, and Zerodha charges nothing extra for closure-cum-transfer.
Last updated: October 2026
Closing a demat account is a formal request to your depository participant (DP), usually your broker. If you are leaving a broker and want to keep your shares, use a closure-cum-transfer so they move to your new account. This guide follows CDSL’s published closure FAQ and the closure pages of brokers that publish theirs, read in October 2026, and includes a closing letter you can copy.
Before you close the account
- Clear negative balances. Zerodha asks you to clear any negative balance first.
- Square off and move holdings. Sell or transfer holdings to another account, and close open positions.
- Cancel recurring items. Zerodha asks you to delete SIPs and mandates.
- Download your reports. Contract notes, ledger and P&L statements are not accessible after closure at Zerodha.
- Wait for IPO allotments. Zerodha asks you to wait until allotment is final before closing.
- Know the finality. Zerodha says you cannot reopen the same account with the same user ID, and that repeated opening and closing with the same PAN can lead to a new application being denied.
This list is Zerodha’s own; other brokers have similar requirements, so check yours.
How to close: three routes
| Route | How it works | Limits |
|---|---|---|
| Paper request | Give the DP the Account Closure Request Form (ACRF), or a letter signed by all holders | Works for any account; holdings must be nil or moved |
| Online closure | Close through your DP’s web portal or app. If the account has holdings you e-sign the form with Aadhaar and upload the target account’s Client Master Report | Only for sole-holder accounts with no pledge, freeze or pending demat requests, and only if your DP offers it |
| Email request | Send the request from your registered email id | Only if the account holds nothing |
Requests sent by email, SMS or messaging apps are not accepted for accounts with holdings, according to CDSL’s FAQ.
If you want to keep your shares: closure-cum-transfer
- Open the new demat account first, in the same holder names and the same order.
- Submit the ACRF with the target account details, plus the target account’s Client Master Report (CMR) digitally signed or e-signed by an official of the new DP.
- Write “Shifting of account” as the reason and include the declaration that all transactions in the account are authentic.
- Within CDSL, balances that are locked-in or pending demat or remat move with free securities, but pledged and frozen ISINs do not. To the other depository, only free balances move.
- Unpledge anything pledged before you submit. Zerodha lists the target must be the same holder status and that locked-in stocks, mutual funds and government securities can go only to a CDSL account.
Zerodha says a closure-cum-transfer takes no additional charge, and describes closure as taking 2 working days after you submit. See also how to transfer shares between demat accounts.
Pending demat requests
If a dematerialisation request has been pending with a company for a long time, closure can be blocked. CDSL’s FAQ says you must ask the company to reject the pending request, using letters in its prescribed formats, so the DP can complete the closure. For requests pending for more than 60 days with non-responding companies, you write to your DP asking for the pending request to be rejected.
Can the DP close your account?
Yes, in some cases. CDSL lists non-payment of dues, violation of the rights and obligations document, and transfer to another DP when a branch or main DP closes. In those cases you get a notice of at least 30 days, and the DP can initiate closure if you do not respond within 30 days of the letter being dispatched.
Closing letter template
CDSL accepts a letter signed by all holders in place of its form. This template follows the fields on the Account Closure Request Form (for example the form published by Dhan). If your broker has its own form, use that instead. Replace the text in square brackets and have every holder sign.
To,
The Manager / Depository Participant
[Name of broker / DP]
[Address of DP]
Date: [DD/MM/YYYY]
Subject: Request to close demat account [DP ID] [Client ID]
Dear Sir / Madam,
I / We, the sole holder / joint holders [delete as applicable], request you to close the demat account detailed below with effect from the date of this letter.
DP ID: [DP ID]
Client ID: [Client ID]
Name of first / sole holder: [Name]
Name of second holder (if any): [Name]
Name of third holder (if any): [Name]
Address for correspondence: [Address, city, PIN code]
Reason for closure: [for example, shifting to another broker]
Balance in the account (tick one):
[ ] Nil balance, no securities held
[ ] Transfer all eligible holdings to my / our account:
Target DP name: [Name] Target DP ID: [DP ID] Target Client ID: [Client ID]
(Client Master Report of the target account, signed by the new DP, is attached)
Declaration (for closure due to shifting of account): I / We declare and confirm that all the transactions in my / our demat account are true and authentic.
Yours faithfully,
[Signature of first / sole holder] [Signature of second holder] [Signature of third holder]
[Name] [Name] [Name]Closure charges
| Broker | Closure charge as published |
|---|---|
| Axis Direct | Nil (Axis Bank demat account page) |
| mStock | No charge for account closure |
| Zerodha | No additional charge for closure-cum-transfer |
| Others | Not stated on the pricing pages checked. Ask your DP before you submit |
Compare brokers one to one on the broker comparisons hub, or test your own order sizes in the brokerage calculator.
Closing a demat account: FAQs
How do I close my demat account?
Clear dues, sell or transfer holdings, then give your DP the Account Closure Request Form or a letter signed by all holders, or use your broker’s online closure if available.
Can I close a demat account by email?
CDSL says a request from the registered email id can be accepted only if the account has nil holdings. Requests by email, SMS or messaging apps are not entertained for accounts with holdings.
What happens to my shares if I close the account?
They must be sold, transferred to another demat account (closure-cum-transfer) or rematerialised (converted back to paper) before the account can close.
Is there a fee to close a demat account?
Axis Bank lists closing as nil, mStock lists no charge and Zerodha charges nothing extra for closure-cum-transfer. Others do not state it on their pricing pages, so ask your DP.
Can I reopen the same account?
At Zerodha you cannot reopen the same account; you would apply for a new one. Check your broker’s rule.
Is STT different between brokers?
No. STT is set by the government: 0.1% on buy and sell for delivery, 0.025% on the sell side for intraday, 0.05% on the sell side for futures and 0.15% on the sell premium for options. It is the same at every broker.
Sources
Official pages and documents read in October 2026: CDSL account closure FAQ; Zerodha: how to close my account; Zerodha: closure-cum-transfer; Dhan account closure form; Axis Bank demat charges; mStock pricing.
Depository and broker procedures change and differ by DP. This guide is for information only, not legal or tax advice. Check your own DP’s current form, portal and charges before you submit anything.
